New Delhi, Sep 8: Gold-backed lending is emerging as a major growth driver for non-banking financial companies (NBFCs), with loans against gold jewellery rising 68.5 per cent year-on-year in July 2026, according to Reserve Bank of India (RBI) data.
The sharp rise highlights growing demand for quick and secured credit, while also strengthening the position of gold loans within the NBFC retail lending business. The segment had recorded 69.3 per cent growth in June and 43.9 per cent growth a year earlier.
Consumer financing is also gaining momentum. Loans for consumer durables grew 51.5 per cent in July, accelerating from 46.8 per cent in June and 18.8 per cent in the year-ago period. The trend points to stronger household demand for financing purchases of electronics, appliances and other consumer goods.
For NBFCs, the strong performance of gold and consumer durable loans is helping expand the retail credit business. Overall retail credit extended by NBFCs and housing finance companies grew 21.4 per cent in July, showing that consumer-focused lending continues to support sector growth.
The gold loan boom is also creating new opportunities for lenders as rising gold values improve the collateral available against loans. At the same time, the rapid growth in consumption-linked borrowing is likely to remain an important area for lenders to monitor as they balance business expansion with credit quality.
Overall, the July data points to a changing NBFC lending landscape, where secured borrowing against household assets and rising consumer demand are playing an increasingly important role in driving credit growth.